Many business owners doubt and are afraid to get the assistance of a business broker when considering to sell their business. You may be one of these owners that feel the same. You may ask,
“What kind of value can a business broker bring to the selling process? Won’t working with a business broker just be another unnecessary expense?”
Most business owners assume that the only intention of business brokers is to get their percentage on the sale and doesn’t care enough about the quality of the businesses involved. We often think that business brokers are only interested in getting their payout from commissions through a selling or buying process that we do not understand. Most often we get frustrated and feel that we are being cheated out of the best possible outcomes of the sale.
Let’s have a look at the other side of the coin and understand how business brokers can help you when you buy or sell a business.
Business Brokers are Professionals
Business brokers are professionals who help individuals in buying or selling businesses. If you are a business buyer, they will help you find a suitable business that matches your requirements. They can also suggest financing plans if you want to have a business that is a little out of your budget. If you’re a business seller, they will help you find a buyer that will pay a fair market price for your business.
John Chang, a successful entrepreneur shared his insights about what it means to work with a business broker, he said:
“A knowledgeable business broker will know not only your industry but ideally they’ve been in contact with key players. The smaller your niche, the more important this is. Think about it, if business circles are already tight communities – who will these folks trust more with their money? People they know or an “outsider”?”
Yes, business brokers have a network of contacts from the industry that trust them. This gives you a variety of buying or selling options you can choose from. This will save you a lot of precious time. Let the business broker’s connections and reliable business processes work to your advantage.
Business Brokers Always Target the Top, Fair Market Price
It’s pretty basic, the higher the price, the higher their commission. A good business broker will always look for the top fair market price. He needs to make sure that your business in not priced too high that you lose price-conscious but highly interested buyers, and not too low that you feel cheated out of the best deal. They will not only promise you the top fair market price, but will prove that they can do it when you work with them. If they cannot give you what they promise, brokers run the risk of ending up financially disadvantaged and unstable.
Bill Wylie, a businessman, responded via Quora about what it means when you hire a business broker. He said:
“Being exposed to more opportunities that you might not otherwise have found. It also good to have a sounding board of someone with experience.”
Business Brokers offer Legal Protection
You heard it right, having a business transaction with a licenced business broker will let you have legal protection when something goes wrong. There are many legal procedures and regulations that should be complied with in the process of buying or selling a business. Navigating through all of these requirements may be a complicated, time consuming exercise with possible legal risks for you.
Ryan Blacker, a businessman said that:
“As with any licenced broker or agent you are… getting legal protection with that sale or acquisition. Many people lose their assets by not having proper legal documents in place.”
Business brokers know the law and legal processes when it comes to buying and selling businesses. You can feel better knowing that you’re better protected.
The Advantages of having a Business Broker
Fabio Sexias, owner of seven internet companies, came up with the advantages of having a business broker, he states that:
- You can leverage on their knowledge of the market segment.
- You can take advantage of their network of contacts and suppliers.
- You can have more variable cost than fixed cost. And that’s better when you are a small company.
- You can learn from them.
Working with Specialists
Now that you’ve learned about the advantages of having a business broker on your next business purchase or sale, we highly recommend working with one who is a specialist in your industry. This ensures that you are working with a professional who truly knows your unique needs and has numerous industry contacts who are highly interested in the kind of business that you are buying or selling. Finding and working with a specialist licenced business broker will work to give you a huge advantage whether you are buying or selling a business.
If you have a hospitality franchise or business to sell, why don’t you sign up for a free Business Assessment?
ABOUT REDMAKO BUSINESS SALES
Redmako Business Sales have been selling hospitality businesses and franchises in Queensland for over 11 years. We bring together our expertise in hospitality and in buying and selling businesses to ensure a service tailored to you.